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CHR accuses govt. of excessive printing of money in violation of agreement with IMF

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Keerthi

The Center for Human Rights and Research (CHR) Sri Lanka, in a statement issued recently has alleged that the National People’s Power (NPP) government excessively printed money in violation of the agreement reached with the International Monetary Fund (IMF).

Executive Director, CHR, Rajith Keerthi Tennakoon said that printing of money, declining foreign reserves, and rising domestic debt could pose a significant challenge to achieving the year’s economic development targets, it said in a statement.

Tennakoon said: “From October 2024 to June 2025, the Central Bank of Sri Lanka printed Rs. 1,225.9 billion (or Rs. 1.2 trillion). The printing of money in violation of agreements with the International Monetary Fund could be the beginning of the country heading towards an economic crisis once again, according to the statement.

Contrary to the guidelines of the International Monetary Fund, the Central Bank printed Rs. 210.3 billion (10.4% expansion) in June 2025 alone. Rs. 233.90 billion was printed in March 2025, the highest amount printed in the first six months. During the Gotabaya regime, the economy was devastated by excessive money printing (e.g., the April-May 2022 expansion of 17 -20%). It is the joint responsibility of Parliament and the Central Bank to take appropriate steps to prevent the country from experiencing another financial crisis, it said.

The country’s debt has been increasing rapidly since the Presidential Election last September. Following the formation of the new government, Sri Lanka’s domestic debt, which stood at Rs. 17,595.05 billion as of April 2025, has increased to Rs. 18,629.86 billion, representing an additional Rs. 1,034.81 billion.

Under the new government, the country’s total domestic and foreign debt has increased from Rs. 28,574.65 billion to Rs. 29,480.39 billion, representing an increase of Rs. 905.74 billion. Although the amount of foreign debt has declined, this is mainly due to continued domestic borrowing through the issuance of treasury bonds and bills.

The Rs. 65 billion bond issue presented by the Central Bank on August 12 was not entirely sold. There was not a single bid for the 2032 bond (8% interest). This is a clear red light for the domestic borrowing policy.

The foreign reserves, which were $6.531 billion in June, fell to $6,080 million by the end of June. The foreign reserves in July were $ 6.114 billion. The ‘reserves’ are also announced, including derivative contracts through swaps.

However, when the swap exchange value is removed, the country’s net reserves, which were $2,799 million in March, have decreased to $2,210 million as of June, as follows.

Of the total reserves in December 2024, $6,122 million, Swap was $3,548 million, and net reserves were $2,574 million.

As of June 2025, the total reserves stood at $6,080 million, comprising $3,870 million in Chinese and other swaps and $ 2,210 million in net reserves. Accordingly, the decrease in net foreign reserves from December 2024 to June 2025 is $ 364M.

When the early signs of the economic collapse of 2021 – 2022 emerged, people with quantitative knowledge warned about money printing, unlimited borrowing, and a decline in foreign reserves. Despite those warnings, hiding facts and criticizing critics, the 2022 ‘financial collapse’ developed into a massive economic crisis. It is the responsibility of the Central Bank, the Treasury, the Ministry of Finance, and the Parliament to identify the leading signs of a similar financial collapse sooner and take measures.

The printing of money by Rs. 1,225.9 billion, a decline in foreign reserves by $ 364 million, and an increase in the country’s debt by Rs. 905.74 billion will inevitably lead to a decrease in the country’s economic growth rate. It is a situation that will have long-term adverse effects.



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No child should be deprived of vocational or higher education due to poverty – PM

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Prime Minister Dr. Harini Amarasuriya stated that all government strategic plans must be formulated in a manner that ensures no child in the country is deprived of vocational education or any other educational opportunity due to economic hardship.

The Prime Minister made these remarks while addressing a workshop on budget formulation and strategic planning of institutions affiliated with the vocational education sector, held on  29th and 30th of January 2026 at the Grand Monarch.

The workshop was organized with the participation of heads and senior officials of nine institutions, including two universities affiliated with the vocational education sector.

The Prime Minister pointed out that it is essential to align the development plans of key institutions and the affiliated institutions with the National Economic Development Plan.

The Prime Minister stated that while educational institutions produce individuals with vocational knowledge, reforms must also nurture compassion, empathy, care for others, and ethical values. The Prime Minister noted that the objective of this initiative is to nurture professionals enriched by humanity.

She further emphasized that it is the responsibility of the government to further expand pathways for children who are experiencing economical disadvantages to access vocational education and secure their future.

Attention was also drawn to the sectors of AI revolution and the future of vocational education. The Prime Minister observed that there is still no comprehensive global understanding of the changes taking place in the world of work and vocational fields due to artificial intelligence (AI). She stressed that integrating vocational education into the mainstream education process through educational reforms is an urgent necessity at this time.

The revolution brought about by AI technology is often driven by profit. Just as we were exploited during past industrial revolutions, we must ensure that we are not left behind or marginalized in this revolution. We must not merely confine ourselves to a data center.

The Prime Minister highlighted that while teaching and learning activities can be carried out online, the impact of technology is limited in professions involving human care and compassion, such as childcare and caregiving services underscoring the importance of developing soft skills and adopting a human-centered approach.

It was discussed that the flexible pathways should be created to enable a student to progress continuously through vocational education up to doctoral level, as well as to re-enter education while being employed (lateral entry). While ensuring such flexibility in the system, maintaining high standards and quality in education was highlighted as essential to ensuring credibility.

The event was attended by the Deputy Minister of Education and Higher Education Dr. Madhura Senevirathna, Deputy Minister of Vocational Education Nalin Hewage, Secretary to the Ministry of Education Nalaka Kaluwewa, Vice Chancellor of the University of Vocational Technology Professor Prasanna Premadasa, Vice Chancellor of the Ocean University Professor Nalin Rathnayake, Chairman of NIBM Dr. G. Thantirigama, Director General D.M.A. Kulasooriya, and several other officials.

(Prime Minister’s Media Division)

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National Assessment and Policy Review: The impact of social media on children

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Deputy Minister of Digital Economy, Eranga Weeraratne, stated that the Ministry of Education, the Ministry of Women and Child Affairs and the Ministry of Digital Economy are planning to initiate a national assessment and policy review on the impact of social media on children.

The Deputy Minister emphasized that the initiative is expected to be advanced by giving due consideration to the insights of experts across all relevant fields, including child protection, education, health, mental health, cyber security, law and research, as well as by listening to the voices of civil society and youth.

Full statement made by Deputy Minister, Eranga Weeraratne.

“Many parents in Sri Lanka today face the challenge of understanding the impact of social media on their children and determining what measures they should take to ensure their safety. The solution is not to restrict children’s access to technology. Social media offers numerous benefits, including educational opportunities, the development of creative skills and improved communication. However, there is also a reality we must acknowledge. The online environment can often be unsafe, overwhelming and psychologically stressful for children. The resulting harm can negatively affect a child’s sleep, education, friendships and overall mental well-being. In some cases, excessive engagement with social media becomes difficult to control. Attempts to prevent such overuse may sometimes lead to conflicts, anger, or harsh disciplinary measures, which further impact learning and mental health. Consequently, children may experience stress, diminished self-confidence and emotional distress.

Online cyber bullying is another major concern. Additionally, children are often exposed to age-inappropriate content, including violent, sexual, or otherwise harmful material. There have been cases where children repeatedly engage with such harmful content, becoming increasingly absorbed in it. Some online games also present situations that encourage children to engage in disruptive or unsafe behaviour.

In extreme cases, such engagement has even led children to put their lives at risk. For this reason, ensuring the online safety of children has become a national priority in many countries. Our approach, likewise, must be guided by three fundamental principles.

First, the safety of children is paramount. This remains a non-negotiable policy of the government. Second, our actions must be based on evidence and research. We never proceed based on assumptions. Third, while safeguarding rights and privacy, our goal is to minimize excessive surveillance. Striking a balance between rights, safety and innovation is our primary objective.

Many countries around the world are already taking measures in this regard. It has become a timely necessity for us to carefully study these experiences, adapt them to our context and develop a comprehensive programme to protect our children. As a first step, we hope to initiate a national assessment and policy review on the impact of social media on children, in consultation with the Ministry of Education and the Ministry of Women and Child Affairs.”

Experts in fields such as child protection, education, health, mental health, cyber security, law and research, along with the voices of civil society and youth, must be engaged in this effort. This is not a challenge that the government can address alone. Parents, teachers and children themselves all need to participate collaboratively. Through this approach, we can create an environment where our children can make full use of technology safely and responsibly.

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Public officials must clearly understand public expectations against corruption and fraud – Secretary to the President

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In line with the Government’s programme to build a clean, transparent and corruption-free public service, a workshop to brief heads of 250 state institutions that have been instructed to establish Internal Affairs Units was held on Thursday  (29) at the auditorium of the Sri Lanka Foundation Institute, under the patronage of Secretary to the President, Dr. Nandika Sanath Kumanayake.

As the first phase of this programme, Internal Affairs Units were previously established in 106 state institutions and the relevant officers were trained accordingly. As part of the second phase, instructions have been issued to establish Internal Affairs Units in an additional 250 state institutions. Accordingly, this workshop was organised by Presidential Secretariat, with the assistance of the Clean Sri Lanka Programme.

Although Sri Lanka continues to maintain relatively high rankings in sectors such as education and healthcare, Secretary to the President, Dr. Nandika Sanath Kumanayake noted that the country is ranked 121st in the 2024 Corruption Perceptions Index, a position that could adversely affect its overall standing in other key sectors.

Addressing the gathering, the Secretary to the President stated that while the primary slogan of the recent public uprising was against the corrupt politics, the allegations were directed not only at corrupt politicians but also at corrupt public officials. He emphasised that the public uprising occurred at a time when the country had become economically bankrupt and its adverse consequences were being directly felt by the people.

He further observed that such public uprisings are not sudden events, but rather the culmination of a prolonged and systematic process, driven by public frustration and the erosion of trust in governance.

Further addressing the workshop, Secretary to the President emphasised that public uprisings should not be underestimated, noting that they represent a powerful expression of public will.

He stated that it is essential for public officials, as well as politicians, to have a clear understanding of public aspirations and public sentiment. As public servants, he stressed, there is an obligation to deliver a clean, transparent and accountable public service to the people.

Accordingly, he explained that a structured programme has been initiated to strengthen the integrity of public service delivery. The establishment of Internal Affairs Units forms a key component of this initiative, aimed at ensuring greater transparency and accountability within state institutions.

Dr. Kumanayake further noted that public officials must remain mindful of upholding ethical standards while performing their duties, as strengthening individual integrity can contribute to transforming the broader culture of corruption within the public sector.

He highlighted that Internal Affairs Units can be viewed both as a mechanism for fostering a culture of integrity within the public service and as a platform that enables the public to raise concerns regarding the conduct of public officials, thereby strengthening accountability and public trust.

At the event, Additional Secretary to the President, Ms. Chandima Wickramasinghe and Senior Lecturer at the University of Kelaniya,  Tharindu Dhananjaya Weerasinghe delivered keynote presentations.

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